This paper by Pixar has a really detailed description of the algorithms they used for simulating cloth and fur in Monster's Inc (nearly 20 years ago but still a really interesting resource): https://graphics.pixar.com/library/UntanglingCloth/paper.pdf

Pinbat

As for real-time clothing simulation applications, Nvidia's PhysX is a really great tool for developers (https://developer.nvidia.com/clothing).

qqqube

This paper talks about how to simulate cloth using a simple spring-mass model: https://www.researchgate.net/publication/327217866_Cloth_Simulation_for_Computer_Graphics